Data security firm Cyera nears 12 billion dollar valuation despite operating losses
Israeli-headquartered data security firm Cyera is closing in on a 12 billion dollar valuation in a new 300 million dollar funding round led by Evolution Equity Partners. According to TechCrunch, the valuation corresponds to 80 times the company's annual recurring revenue (ARR); that multiple is among the highest seen in the cybersecurity sector to date.
Cyera offers a data security posture management (DSPM) platform that enables enterprise customers to determine the location, sensitivity and risk profile of their data assets. Founded in 2021 by Yotam Segev and Tamar Bar-Ilan, the company has announced that it has worked with more than 700 enterprise customers over the past three years. Approximately 90 of these are Fortune 500 companies.
In the context of valuation, Cyera's latest funding round shows the record-on-record level in the global cybersecurity market. According to TechCrunch, Evolution Equity Partners is an investment fund that has consolidated its cybersecurity portfolio through previous investments in CrowdStrike, Carbon Black and Cylance. The fund's managing partner Richard Seewald commented that 'the DSPM category is in an important growth phase because institutions are building their AI infrastructure on a foundation of data security.'
Despite the height of the multiple, it is important to remember that Cyera is a company operating at a loss. According to TechCrunch's review, the company's annual cash-burn rate has exceeded 180 million dollars due to high customer acquisition costs and expansion of the technical team. The funding from the round will be used both to support operating margins and to expand the AI product line.
One of the sector commentaries on this funding round came from Andreessen Horowitz partner Sarah Wang, who spoke to TechCrunch. Wang said 'the 80x ARR multiple is a level usually seen in the cybersecurity sector at strategic acquisition prices; the fact that it has been reflected in private market funding rounds as well shows that investor appetite has not changed.' Wang noted that similar multiples had been paid in the Carbon Black and Mandiant acquisitions.
The competitive landscape of the DSPM category has intensified over the past three years. Cyera's direct competitors include Wiz, Securiti.ai, Dig Security and Lacework. Of these, Wiz rejected Google's 33 billion dollar acquisition offer in 2024; but at the start of 2026 it announced that it remained private at a 35 billion dollar valuation. According to Gartner's 2025 report, the DSPM market is expected to reach an annual size of 5.2 billion dollars by 2028.
Cyera CEO Yotam Segev, in an interview accompanying the funding round announcement, said 'our customers generate extremely high demands on the traceability of data flows around AI models; that is exactly where we deploy our strength.' Segev added that half of the company's customers in the past 12 months had requested data security audits for AI applications.
On the enterprise buyer side, large financial institutions using Cyera's services include JPMorgan Chase, Citi and Wells Fargo. JPMorgan's deputy head of cybersecurity Sara Sperling said Cyera was 'one of the few solutions that responds to the operational dimension of data governance for AI.' Such enterprise buyer pressure is an important factor supporting the multiple.
The global cybersecurity investment environment, as seen in Cyera's funding round, is undergoing notable consolidation in categories linked to AI. According to CB Insights data, global cybersecurity venture capital investments in the first five months of 2026 reached a total of 8.4 billion dollars; that figure represents a 47 percent increase compared to the same period of 2025. DSPM and AI security categories account for a significant portion of this growth.
Cyera's reaching the 12 billion dollar valuation mark in the private market also signals that a possible IPO in early 2027 may be on the table. Goldman Sachs private market advisor David Sperling said 'if the company's recurring revenue base reaches 150 million dollars, the IPO valuation could be in the 20-25 billion dollar range.' This article does not constitute investment or share-purchase advice; investors should always consult their own financial advisers.